Tivway Ltd & Ors -v- Companies Acts [2009] IEHC 494 (13 November 2009)

Tivway Ltd & Ors -v- Companies Acts [2009] IEHC 494 (13 November 2009)

The schemes of arrangement are fair and equitable, not unfairly prejudicial to ACC Bank plc., and provide a reasonable prospect of survival for the companies as going concerns. The Examiner's classification of ACC as a contingent creditor was correct. The schemes preserve jobs and offer creditors a better return than liquidation.

Citation
[2009] IEHC 494
Parties
Applicant: Tivway Limited; Applicant: John J. Fleming Construction Company; Applicant: J. J. Fleming Holdings; Objector: ACC Bank plc.; Creditor: Anglo Irish Bank; Investor: Dunban Limited; Statutory Body: Railway Procurement Agency
Jurisdiction
Ireland
Judgment Date
13 November 2009
Procedural Posture
Application for Confirmation of Scheme of Arrangement Under Companies (amendment) Act 1990 / Judgment on Confirmation of Scheme
Outcome
schemes of arrangement confirmed
Legal Topics
Examinership, Scheme of Arrangement, Classification of Creditors, Unfair Prejudice, Survival of Company as Going Concern
Corporate Insolvency Company Law Examinership Scheme of Arrangement Classification of Creditors Unfair Prejudice Survival of Company as Going Concern

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Parties

Tivway Limited

Applicant

John J. Fleming Construction Company

Applicant

J. J. Fleming Holdings

Applicant

ACC Bank plc.

Objector

Anglo Irish Bank

Creditor

Dunban Limited

Investor

Railway Procurement Agency

Statutory Body

Procedural Posture

Application for Confirmation of Scheme of Arrangement Under Companies (amendment) Act 1990 / Judgment on Confirmation of Scheme

Legal Issues

  1. 1 Whether the schemes of arrangement should be confirmed under s.24 of the Companies (Amendment) Act 1990
  2. 2 Whether ACC Bank plc. was unfairly prejudiced by the schemes
  3. 3 Whether ACC Bank plc. was correctly classified as a contingent creditor

Ratio Decidendi

The schemes of arrangement are fair and equitable, not unfairly prejudicial to ACC Bank plc., and provide a reasonable prospect of survival for the companies as going concerns. The Examiner's classification of ACC as a contingent creditor was correct. The schemes preserve jobs and offer creditors a better return than liquidation.

Court Disposition

schemes of arrangement confirmed

Orders

  • Schemes of Arrangement for Tivway Limited, John J. Fleming Construction Company, and J. J. Fleming Holdings confirmed.
  • Tivway scheme confirmed with addition of clause 10.31 allowing RPA and local authorities to bring proceedings for non-payment of levies in future.